The Pointsbet (ASX: PBH) share price is up around 9% after announcing another US deal.
What is Pointsbet?
Pointsbet is a corporate bookmaker based out of Darwin with operations in both Australia and the U.S. PointsBet has developed a scalable cloud-based wagering platform through which it offers its clients innovative sports and race wagering products.
The new US deal
Last week the company announced a deal with a MLB team. Today Pointsbet announced that it has signed an agreement with Betmakers Technology to offer fixed odds betting on horseracing in New Jersey.
Betmakers has secured an exclusive 10-year agreement with the operator of the Monmouth Park racetrack in New Jersey to deliver and manage fixed odds horseracing.
Pointsbet has the intention to expand the offering into New Jersey to include races and vision from other domestic and international jurisdictions when content is approved and all regulatory items have been approved.
The agreement also allows Pointsbet to offer fixed odds on horse racing to clients in other US states where Pointsbet has market access via Betmakers.
Pointsbet CEO and Managing Director Sam Swanell said: “Securing an agreement with BetMakers is a major step in what we believe to be an important strategy for our US plans. As a company, we understand thoroughbred, harness and greyhound racing and we intend to capitalise on the expertise we have gained in Australia as we roll out racing products into the US market where legal, starting in New Jersey.
“We see this as a significant opportunity. Annually, there are twice as many horse races in the US as there are in Australia, with a much larger total prize tool, however the amount wagered per capita in the US on horse racing remains a fraction of that in Australia.”
Summary
Another positive move from Pointsbet. It’s building a good footprint to generate more US earnings. I don’t know enough about the company to comment on its long term future, but it’s doing the right business development things so far.
[ls_content_block id=”14945″ para=”paragraphs”]
